Assessee incurring expenditure in foreign exchange for providing of technical services related to his business of export of computer software shall not be excluded while computing export as well as total turnover for purpose of deduction under section 80HHE.   Case: Commissioner of Income-tax vs. Motor Industries Co. Ltd. Facts: The assessee being a company was engaged in the business of export of Computer Software and its transmission to outside India. The assessee incurred a sum of Rs. 63 lakhs in foreign exchange in providing the technical service outside India. The said sum was included in total export turnover. Thus, assessee claimed benefit under section 80HHE in respect of the total export turnover. The AO was of opinion that expenditure incurred in foreign exchange in providing technical services of outside India was excluded in computing the export turnover under section 80HHE. Thus, AO rejectedthe assessee’s claim. CIT (A) confirmed the order of AO. The Tribunal held that only freight, telecommunication charges and insurance charges attributable to the delivery of computer software outside India was to be excluded for the purpose of determining export turnover. Thus, the Tribunal set aside the orders of lower authorities. On appeal to High Court. Held: The Court noticed that the assessee was engaged in the business of export of computer software and its transmission outside India. The software Engineers deputed abroad who among other things have to do testing, installation and monitoring of software supplied to the client. The said service being technical in nature does not fall within clause (ii) of sec. 80HHE(1). Thus, the Court held that said expenditure cannot be excluded in computing export turnover. Hence, foreign technical expense related to main business of assessee shall not be excluded for Sec. 80HHE. __________________________________________________________________________________________________